As of the end of 2022, almost 2 million seniors were receiving Social Security benefits for their spouses, with an average payout of approximately $901 per month. After accounting for the COLAs for 2023 and 2024, the average monthly payment for this year is around $1,011. However, if you’re trying to set aside your retirement expenses, averages aren’t very helpful.
Social Security Spousal Payout; Source- Forbes
Spousal Benefits
Using their partner’s work record as a guide, wives and ex-spouses of eligible workers can apply for Social Security benefits. However, there are some requirements, such as being 62 years of age or older or taking care of an eligible worker’s or spouse’s minor child. You haven’t remarried and are now married to a qualified worker, or you have been wed to one for at least ten years. If the eligible worker is an ex-spouse, you must have separated at least two years ago, or they are already collecting benefits. In comparison to the Social Security benefit you could receive based on your work history, the spousal benefit to which you are entitled is more. The last criteria can be confusing for some people, but the majority are rather straightforward to understand.
Eligibility For Social Security Spousal Payment
It’s safe to conclude that if you match the other requirements, you will be eligible to file for a spousal payment even if you have never worked. However, if you have also paid Social Security taxes over time you will be able to determine which type of benefits you will receive by knowing how the government determines Social Security and spousal benefits. A worker’s Social Security payment is determined by the government by adding up all of their wages from their 35 highest-earning years, factoring in inflation, and dividing the total by 420, which is the number of months in 35 years. The employee’s average indexed monthly earnings (AIME) are the outcome. The amount of the worker’s paycheck is then calculated by the SSA by entering this into the benefits formula.
Primary Insurance Amount
The amount a worker is eligible for at full retirement age (FRA), which for modern workers is 66 to 67, is known as the primary insurance amount (PIA). If a worker waits to claim, their Social Security benefits are reduced by up to 30%; meanwhile, if they claim before this age, their benefits are increased slightly until they reach their maximum at age 70. Spousal benefits work a little differently. Half the worker’s PIA is the maximum benefit available to spouses. The maximum amount you may receive at your FRA, for instance, would be $1,000 if your spouse the worker qualifies for a $2,000 monthly payment at their FRA. However, making an early claim is penalized. Your benefit is progressively reduced each month that you get benefits before your FRA.
